Ride-hailing platforms Bolt and inDrive are stepping up efforts to strengthen their operations in Nigeria following Uber’s decision to withdraw from the country after about 12 years.
Uber announced its exit on 2 September, citing “evolving business priorities and investment focus across the continent”.
The departure has created an opening for rival platforms to expand their customer and driver networks in one of Africa’s biggest ride-hailing markets.
While Uber is leaving a country of more than 200 million people, both Bolt and inDrive have reaffirmed their commitment to Nigeria and signalled plans to deepen their operations.
inDrive described Nigeria as one of its key markets in Africa, saying its active user base in the country had continued to grow annually.
The company said it had made substantial investments in Nigeria and intended to increase spending on service quality, safety, technology and local communities.
Its operations have also expanded beyond conventional ride-hailing, with the company offering services including its Economy and Courier products.
Bolt similarly described Nigeria as an important market and said it remained committed to providing mobility services for passengers while creating income opportunities for drivers.
The company said it operates in several Nigerian cities and is focused on improving its services as the market changes.
The Senior General Manager for Bolt West Africa, Teddy Appa-Dankyi, said the company had established a sizeable network of passengers and drivers in Nigeria.
“We have built a strong community of riders and driver partners over the years, and our focus is on continuing to serve them while strengthening our operations and creating more opportunities across the market,” he said.
inDrive Welcomes Competition
inDrive said Uber’s withdrawal came unexpectedly, describing the American platform as a significant competitor.
It nevertheless said competition had encouraged companies across the industry to improve their products and services.
“Uber has been a strong and significant competitor, and we have always welcomed competition because it drives us to continuously improve our products and services for the benefit of our users,” the company said.
The platform also said it was prepared to accommodate drivers and mobility investors who could be affected by Uber’s departure.
It said it was developing solutions for fleet owners and mobility investors that would enable them to deploy vehicles productively and create additional income through its platform.
“We also welcome drivers and mobility investors who may be affected by Uber’s exit to join the inDrive platform and continue serving passengers across Nigeria,” it said.
The company said its objective was to provide drivers with flexible earning opportunities while maintaining affordable and dependable transport options for passengers.
Bolt’s Appa-Dankyi acknowledged that Uber’s exit could create uncertainty in the sector but said the company was taking a long-term approach to the Nigerian market.
“Our focus remains firmly on the long term. We will continue working closely with our drivers, riders, regulators and other partners to contribute to a reliable, accessible and sustainable mobility ecosystem in Nigeria,” he said.
inDrive Highlights Negotiated Fares
inDrive attributed part of its growth in emerging markets to its pricing structure, which differs from the algorithm-based fare system used by some traditional ride-hailing platforms.
The company said it charges a service fee of about 10 per cent and allows passengers and drivers to negotiate the final fare.
“This model gives both parties greater control and enables them to agree on a price that works for them. Unlike traditional ride-hailing platforms, we do not use algorithms to set ride prices,” the company said.
It argued that the approach was particularly relevant in markets where consumers remained highly sensitive to transportation costs.
Drivers Seek Stronger Protection
Meanwhile, the Amalgamated Union of App-Based Transporters of Nigeria (AUATON-NG) has called for an immediate social dialogue on the implications of Uber’s exit for drivers and passengers.
The union’s General Secretary, Ayoade Ibrahim, said stronger protections were needed for workers in the app-based transport sector, particularly those who relied on several platforms.
Ibrahim called for the establishment of a national minimum standard for fares and commissions, as well as transparent procedures for deactivating drivers.
He said such measures should be developed in line with relevant International Labour Organisation standards.
According to him, technology platforms should improve opportunities for transport workers and passengers rather than expose them to decisions made by multinational companies outside Nigeria.
Ibrahim said Uber’s departure should neither be celebrated nor viewed with nostalgia by drivers, arguing that the company had left in line with its global business strategy.
He said multinational technology companies could withdraw from individual markets when those markets no longer aligned with their wider investment priorities.
The union leader urged the Federal Ministry of Labour and Employment, the Federal Ministry of Transportation and relevant airport authorities to incorporate applicable international labour standards into regulatory and licensing frameworks for app-based transport operators.
He also encouraged drivers and passengers to organise across ride-hailing platforms and traditional transport networks to strengthen workers’ rights and industry standards.
“Uber leaving Nigeria after a decade is the case study. Convention No. 193 is the rulebook that should have been in force before the exit, and must now shape whoever takes the work Uber left behind,” Ibrahim said.
He argued that Uber’s exit had exposed weaknesses in Nigeria’s regulatory framework for app-based transportation.
“For twelve years the platform organised work, set prices, took commission and decided who stayed online. When global investment priorities shifted toward robotaxis and a slimmer map of countries, it wound down the operation,” he said.
Ibrahim said stronger labour protections were needed to ensure that drivers and other workers were not left vulnerable whenever technology companies changed their global strategies.
He acknowledged that international labour conventions could not prevent companies from withdrawing from a market, but said they could help ensure that workers and other stakeholders were adequately protected during operations and after an exit.
